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An agency has been issued a record $225,000 fine following 57 “unexplained” trust account withdrawals.
Western Australian (WA) real estate agency Jim’s Realty Pty Ltd, formerly Agape Property Group, has been hit with a record $225,000 fine following a “sustained pattern” of trust account breaches and failures to lodge tenancy bonds.
Consumer Protection WA described the case as “one of WA’s worst real estate misconduct cases”.
An investigation into the business was launched in May 2023 following an audit of the agency’s 2021 annual report, which uncovered a $188,437 discrepancy between the trust account ledger and the bank balance.
Authorities identified 57 unexplained withdrawals totalling $334,915.
The business was ordered to be wound up in September 2024, and the WA government confirmed via liquidators that there were no assets to compensate creditors.
Commissioner for Consumer Protection Trish Blake described the findings as one of the worst examples of trust account misconduct in the state.
“This conduct represents some of the gravest offending under the legislation, marked by deliberate and repeated embezzlement of clients’ funds with no accountability for where the money went. These were not isolated incidents but a clear pattern of offending,” Blake said.
“Despite the company’s insolvency, Consumer Protection proceeded with the prosecution due to the seriousness of the conduct and the need for strong deterrence across the real estate industry.”
The commissioner explained that the absence of record-keeping meant money could not be matched between owners and tenants.
“When proper records are not kept, it becomes impossible to determine what funds were paid and who they belong to. In this case, the records were so deficient that substantial sums could not be allocated to any party,” the Commissioner said.
“Security bonds are often significant sums, and both tenants and landlords rely on them being handled correctly. Lodging them late – or in this case, not at all – exposes consumers to unnecessary financial risk.”
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